The Federal Government has created a dedicated account with the Central Bank of Nigeria for the management and disbursement of the newly approved Exit Benefit Scheme for retiring civil servants, in a move aimed at safeguarding funds and ensuring transparency in the payment of retirement benefits.
- +FG opens special CBN account for retirees’ benefits
The development is contained in an implementation guideline accompanying the Exit Benefit Scheme obtained exclusively by The PUNCH.
The development is contained in an implementation guideline accompanying the Exit Benefit Scheme obtained exclusively by The PUNCH.
The guideline, signed by the Head of the Civil Service of the Federation, Didi Walson-Jack, disclosed that the special account would be domiciled with the CBN and managed by the National Pension Commission as the sole repository of funds earmarked for the scheme.
It stated, “To facilitate efficient management and accountability, a dedicated Exit Benefit Scheme Account shall be maintained with the Central Bank of Nigeria under the management of PenCom.”
The document added, “This account shall be operated solely for the purpose of financing the Exit Benefit Scheme. It shall enable transparent tracking of inflows and outflows, ensuring that all disbursements are properly accounted for and that records are maintained by all relevant agencies.”
The creation of the dedicated account is one of the key implementation frameworks introduced by the Federal Government following the approval of the Exit Benefit Scheme by the Federal Executive Council.
Under the scheme, eligible employees of treasury-funded Ministries, Departments and Agencies who have served for a minimum of 10 years will receive an amount equivalent to 100 per cent of their total annual emoluments upon retirement or disengagement.
The circular stated that the scheme took effect from January 1, 2026.
It read, “The Exit Benefit Scheme is designed to enhance the welfare of eligible Federal Government employees upon their exit from Service.
“Under the Scheme, eligible beneficiaries shall receive an amount equivalent to one hundred per cent (100%) of their total annual emoluments at the time of exit from the Service.”
The document clarified that the new arrangement would not replace the Contributory Pension Scheme but would serve as an additional retirement benefit.
“For the avoidance of doubt, the introduction of the Exit Benefit Scheme is complementary to the ongoing Contributory Pension Scheme. The existing Pension Scheme continues in operation,” the circular stated.
The guideline further revealed that the dedicated CBN account would receive periodic releases from the Federal Government’s annual budget, as well as any special allocations approved for the scheme.
According to the document, “The account shall receive releases from the FGN annual budget, including any special provisions that may be granted.”
The Federal Government also committed to fully funding the scheme, describing it as a non-contributory welfare initiative for retiring employees.
It stated, “The Exit Benefit Scheme shall be fully funded by the government as a non-contributory, post-exit entitlement for eligible employees of Treasury-funded Ministries, Departments and Agencies.”
The guideline added that the funding arrangement underscored the government’s commitment to improving workers’ welfare after service.
“This funding responsibility underscores the scheme’s status as a statutory welfare initiative, and reinforces the government’s commitment to supporting employees with additional benefits upon exiting from the service after a minimum of 10 years,” it added.
Under the implementation framework, PenCom will collate retirement data from the Integrated Payroll and Personnel Information System and the Government Integrated Financial Management Information System, establish a verified database of prospective retirees and compute the financial obligations due under the scheme.
The Budget Office of the Federation will make annual appropriations based on PenCom’s estimates, while the Federal Ministry of Finance will prepare quarterly cash plans for the release of funds.
The Office of the Accountant-General of the Federation will, thereafter, transfer approved funds into the dedicated Exit Benefit Scheme Account at the CBN for onward disbursement to beneficiaries through their Pension Fund Administrators.
The guideline further directed PFAs to pay beneficiaries within 10 working days of receiving remittances from PenCom.
The creation of a ring-fenced account for the scheme is expected to address concerns over delays and funding uncertainties that have historically trailed retirement benefits in the public service.
The Exit Benefit Scheme was approved by the Federal Executive Council as part of efforts to improve the welfare of employees of treasury-funded MDAs.
The scheme became operational from January 1, 2026, and applies to workers who have served for at least 10 years before retirement or disengagement.
In addition to workers retiring after the commencement date, the Federal Government also approved transitional arrangements for employees who retired between January 1 and September 30, 2026, as well as the next-of-kin of eligible employees who died during the period.
Eligible beneficiaries are required to process their claims through their Pension Fund Administrators.
